A Snow Plough Will Generate a Net Income of €2,000

question 24

Multiple Choice

A snow plough will generate a net income of €2,000 per year for its owner. After 8 years, the plough will be worn out and have zero value. The owner has worked out the present value of the net income the snow plough will generate using an interest rate of 10%. Which of the following statements is NOT true?

• A) The present value of the final year's net income is less than €1,100.
• B) The owner would sell the snow plough if she received an offer of €13,000 for it.
• C) The owner would sell the snow plough if she received an offer of €3,500.
• D) The present value of the income of the net income the snow plough will generate over the 8 year period is more than €10,000.

Know the benefits of different mortgage and payment plans on home affordability.

Grasp the concept of subletting and its implications for renters.

Understand the financial benefits and costs associated with home ownership versus renting.

Identify and explain the purposes of various real estate procedures and entities such as security deposits, zoning laws, and earnest money.

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Definitions:

Positive Reinforcement

A behavioral strategy employing rewards or positive outcomes to increase the likelihood of a desired behavior being repeated.

Antecedent

An event, condition, or stimulus that precedes a behavior and may influence or trigger the behavior to occur.

Stimulus Control

A behavioral technique in psychotherapy that involves altering the environment to reduce the stimuli that trigger unwanted behaviors.

Contingency Management

A behavior modification technique based on the systematic reinforcement of desired behaviors and the withholding of reinforcement for undesired behaviors.